|SB 0278||Allows for recovery of certain purchased energy costs by electrical corporations|
|LR Number:||0794S.02I||Fiscal Note:||0794-02|
|Committee:||Commerce and Environment|
|Last Action:||02/04/03 - SCS Voted Do Pass S Commerce and Environment||Journal page:|
|Effective Date:||Emergency Clause|
SCS/SB 278 - This act allows electrical corporations to recover reasonably and prudently incurred costs for natural gas and purchased electrical energy through energy adjustment rate schedules. The schedules who must be filed with the commission and may be implemented in conjunction with a general rate proceeding or without a general rate proceeding.
An electrical corporation must to submit to a general rate proceeding to determine the level of fuel costs contained in the base rates prior to the initial establishment of the adjustment rate schedules and must submit to a general rate proceeding every three years if they choose to use the energy adjustment rate schedules. During that proceeding the Commission may consider the sensibility of the fuel costs and purchased power costs. The Commission is authorized to adjust the electrical corporations rate of return on equity in any general rate proceeding to compensate for the reduction in risk resulting from the fuel adjustment mechanism. Electrical corporations shall not avoid any rate freeze conditions or other conditions that are a part of any settlements of any general rate proceeding.
Changes in the rate schedules may be made as frequently as every 30 days. A "true-up" procedure similar to the purchase gas recovery for gas corporation will be used to remedy over- collections. Only certain electrical and natural costs which are specified are recoverable. If an electrical corporation has adjustment rate schedules on file with the PSC, they must also submit an energy adjustment report to the PSC by the 15th of each month.
The method for calculating the adjustment rates is specified in a calculation provided in the act. Adjustment rate schedules which are filed with the PSC must include detailed records, workpapers, and calculations for the PSC to make a determination on the level of the energy adjustment rate. Copies of such records must also be provided to the Office of Public Counsel. The adjustment rate schedules will be come effective 30 days after filing and are not subject to suspension by the PSC. Such filings shall be considered on an expedited basis and the procedure for handling such filings is specified.
This act contains and emergency clause.
These provisions are similar to HS/HCS/HBs 404, 324, 403,
344, 426 & 541 (2003).